Record profit for St George
(2 May 2006 – Australia) St George Bank has posted an after tax profit of A$502 million for the half-year ended 31 March 2006, an increase of 11.8 percent on the previous year.
Among the market highlights, St George managing director Gail Kelly pointed to the bank’s strong business banking performance in the middle markets, in which its receivables increased by 18.4 percent for the year.
"Our middle market customers remain the most satisfied and loyal in the market and increasingly advocate the group and provide new sources of business," she said.
St George’s residential lending grew 13 percent and reached over A$60 billion just after balance date; while retail funding improved by 13.5 percent to A$41.8 billion.
"We are particularly pleased with this result given our structural exposure to New South Wales. It is important to note however, that the group’s progressive expansion into our ‘non-core geographies’, namely Victoria, Queensland and Western Australia means that 28 percent of the group’s overall receivables (residential and middle market) are now domiciled in these states," Kelly said.
"The results that have been achieved this half build on the organic growth strategy that we have been executing on for the past four years. Our strategic framework that was developed in 2002 remains in place and guides the investments that have been made in people, product and infrastructure," Kelly said.
The bank is targeting EPS growth of 10 percent for the next two years. Kelly said St George was on track to deliver on these targets.
"Our middle market customers remain the most satisfied and loyal in the market and increasingly advocate the group and provide new sources of business," she said.
St George’s residential lending grew 13 percent and reached over A$60 billion just after balance date; while retail funding improved by 13.5 percent to A$41.8 billion.
"We are particularly pleased with this result given our structural exposure to New South Wales. It is important to note however, that the group’s progressive expansion into our ‘non-core geographies’, namely Victoria, Queensland and Western Australia means that 28 percent of the group’s overall receivables (residential and middle market) are now domiciled in these states," Kelly said.
"The results that have been achieved this half build on the organic growth strategy that we have been executing on for the past four years. Our strategic framework that was developed in 2002 remains in place and guides the investments that have been made in people, product and infrastructure," Kelly said.
The bank is targeting EPS growth of 10 percent for the next two years. Kelly said St George was on track to deliver on these targets.
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